Benchmark Tokyo rubber futures rose on Monday, helped by a weaker yen against the US dollar and a rally in the Tokyo stock market as strong US jobs data offset fears that trade wars between the United States and the rest of the world could slow global economy. Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, rebounded from a two-week low hit on Friday.
The TOCOM rubber contract for November delivery finished 1.0 yen higher at 190.4 yen ($1.74) per kg. The most-active rubber contract on the Shanghai futures exchange for September delivery fell 25 yuan to finish at 11,695 yuan ($1,823) per tonne.
The front-month rubber contract on Singapore's SICOM exchange for July delivery last traded at 142.4 US cents per kg, down 0.6 cent. "The dollar's gain or yen's decline lent support," said Satoru Yoshida, a commodity analyst with Rakuten Securities.
The dollar added 0.15 percent to 109.66 yen following a rise of 0.6 percent on Friday. A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.
The Nikkei share average rose to a one-week high, tracking Wall Street's gains after May jobs data pointed to strength in the US economy, while a weaker yen lifted shares of Japanese exporters.
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